Reco International Group, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Reco International Group, Inc.

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Spark Power Group, Inc.

Why is Reco International Group, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 0.27% and Operating profit at -14.02% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -0.57
DEBT-EQUITY RATIO (HY) Highest at 1.8 %
RAW MATERIAL COST(Y) Grown by 5,354.55% (YoY)
OPERATING PROFIT(Q) Lowest at CAD -0.21 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -40.00%, its profits have fallen by -38%

Below par performance in long term as well as near term

Along with generating -40.00% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Reco International Group, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Reco International Group, Inc.

-40.0%

1.41

141.72%

S&P/TSX 60

19.1%

1.25

15.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.27%

EBIT Growth (5y)

-14.02%

EBIT to Interest (avg)

-0.57

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

-2.91

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-0.34

EV to EBIT

-0.92

EV to EBITDA

-0.92

EV to Capital Employed

-0.46

EV to Sales

0.24

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 0.34 MM

NET SALES(HY)

At CAD 1.3 MM has Grown at 49.97%

DEBTORS TURNOVER RATIO(HY)

Highest at 9.71%

-16What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 1.8 %

RAW MATERIAL COST(Y)

Grown by 5,354.55% (YoY

OPERATING PROFIT(Q)

Lowest at CAD -0.21 MM

PRE-TAX PROFIT(Q)

Lowest at CAD -0.28 MM

NET PROFIT(Q)

Lowest at CAD -0.28 MM

EPS(Q)

Lowest at CAD -0.01

Here's what is working for Reco International Group, Inc.

Operating Cash Flow

Highest at CAD 0.34 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

At CAD 1.3 MM has Grown at 49.97%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Debtors Turnover Ratio

Highest at 9.71% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Reco International Group, Inc.

Pre-Tax Profit

At CAD -0.28 MM has Fallen at -76.17%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -0.28 MM has Fallen at -76.17%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Debt-Equity Ratio

Highest at 1.8 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit

Lowest at CAD -0.21 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Pre-Tax Profit

Lowest at CAD -0.28 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD -0.28 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD -0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Raw Material Cost

Grown by 5,354.55% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales